Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - November 25, 2019 |
- Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - November 25, 2019
- Daily FI discussion thread - November 25, 2019
- Reflections on a year into retirement on the water.
- Weekly FI Monday Milestone thread - November 25, 2019
- Roth Conversion Ladder if retiring early in Canada?
- Social welfare support - In or outside scope of FIRE? Violation of FIRE principles or prudent consideration?
- Affect of Lifestyle Inflation on FI - graphed
| Posted: 24 Nov 2019 10:09 PM PST Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Daily FI discussion thread - November 25, 2019 Posted: 25 Nov 2019 12:10 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reflections on a year into retirement on the water. Posted: 25 Nov 2019 02:15 PM PST I have spent the last year as a blue nomad and since I don't have a blog figured I would share how it went here. Little over a year ago I saw a reddit post of a sailboat and a young guy (/u/sternenhimmel) who sold up everything and sails the world now. Thought that was awesome then closed the tab and forgot about it until 6 months later when work started handing out redundancies and I had had enough. Retired at the ripe old age of 30 definitely on the leanfire side of things but at current spending should have enough with a 3% withdraw rate till I am old enough to access retirement funds. Spent a month travelling Europe then decided I wanted to sail. Spent a month looking for boats, talking to people, joining a sailing club, getting my boat licence and learning to sail. After looking at a few boats I finally settled on one that was all the way on the other side of the country but perfect for my needs. Big enough (33ft/10m) to sail anywhere but small enough to single hand, well priced ($20k), younger than I was and in good enough condition. Spent the first week or two learning the ropes around the bay before taking it out of the water to work on it for a few weeks. Did all the back-breaking work myself then took it out onto the open ocean and never looked back. Spent the rest of the year sailing over 10k nm around some of the most incredible and remote parts of the world and now am almost home (for Christmas, thanks mum). This lifestyle is very different from the 9-5 grind I had been working at but is far from an idle retirement that most people envision. It is quite a lot cheaper than I expected once you get past the initial outlay. Buying the boat and kitting it out as a live aboard cruiser was by far the largest expense but as I brought a used boat I should be able to sell it for roughly what I paid for it. Most of the time I was on anchor which is free so your main expense is food, which I got half from the ocean. Some numbers for ya all in usd over the whole year.
TLDR: retired at 30, brought a yacht for $25k, sailed a ton, ongoing expenses ~10k/y. Can recommend. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weekly FI Monday Milestone thread - November 25, 2019 Posted: 25 Nov 2019 12:11 AM PST Please use this thread to post your milestones, humblebrags and status updates which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roth Conversion Ladder if retiring early in Canada? Posted: 24 Nov 2019 05:59 PM PST Does anyone know whether Roth conversion ladder is still possible if you're planning to retire early (say in 40's) in Canada rather than the US? Afaik, if you file an election to the CRA, you don't need to pay taxes on your Roth IRA gains to the CRA. However, I heard the rollover amounts each year from your traditional IRA to the roth may have the earnings taxed. Consider this series of steps:
At step 3, you would have paid regular income taxes on that tIRA to roth rollover. And I'm guessing you may have to file the taxes in both Canada and the US but you end up paying the higher of the two rather than double taxation. But what about at Step 4 when you withdraw the X dollars from your Roth that you rolled over 5 years ago? Would the CRA "tax you on the gains"? Even though you already paid full income taxes on the rollover amount? This resource here seems to imply that Roth Conversion Ladder is a bad idea if you're moving to Canada because the tIRA rollovers count as a Canadian contribution to the Roth and end up getting taxed. Can anyone confirm this? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 19 Nov 2019 06:27 AM PST How do we see social welfare programs in the light of FIRE? Is it cheating to use or rely on them? Is it just stupid to ignore them, as much as it would be if you were a business owner and ignored corporate tax benefits? There is a raging - and I do mean raging - debate amongst my RL friends on this topic which has generated a lot of heat but relatively little light. My hope is that you would have something to say on the matter that would be actionable. To be clear, I considered 'social welfare' to be: Any government policy or program that helps one's financial situation directly and materially. To frame the discussion, this would include:
This does NOT include:
as these programs require the individual to directly pay in, in order to receive them. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affect of Lifestyle Inflation on FI - graphed Posted: 17 Nov 2019 03:15 PM PST I wanted to take a look at how lifestyle inflation affects one's path to FI. So I compared a few scenarios and graphed the outputs. Scenario 1) You save 20% of your income. You never have any raises, and you never change your expenses. Scenario 2) You save 20% of your income initially. You get raises of 3% per year every year. Your expenses never change, so your contribution to your portfolio continually grows (i.e. your savings rate goes up every year). Scenario 3) You save 20% of your income. You get raises of 3% per year every year. Your expenses are always 80% of your income, which is constantly growing. Your contribution to your portfolio grows each year, but so does your FI target number (since your expenses keep growing as well). Basic assumptions: Initial income of $50k Taxes and Inflation are not considered, so any raise or market growth is "above inflation" The market grows at 7% per year. You start w/ zero net worth. FI Number is expenses * 25 (implies a 4% safe withdrawal rate). What we find for the number of years to reach financial independence for the 3 scenarios: 1) 30 years (no raises, never change expenses) 2) 20.5 years (raises, never change expenses) 3) 42.5 years!!! (raises, expenses grow w/ income) This shows how much lifestyle inflation can affect financial independence! Even if you make more money, it's really hard to outrun. Source code in comments. [link] [comments]  |
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